In fact, Checkbook 401k Loan Interest Payments can be viewed as a way to make backdoor contributions – beyond the Solo 401k contribution limits – to your Checkbook Solo 401k tax advantaged retirement accounts. Once those interest payments are paid to your Solo 401(k) plan or QRP, those funds become additional plan assets that can be invested tax-free.
Do you have debt to pay off? Do you want to purchase a new vehicle? Pay for education? Or, would you like to make an investment outside your Solo 401k using Solo 401k funds? The Checkbook Control 401k loan feature is your best option. In this post will cover all that you need to know to legally take advantage of this Checkbook QRP feature. Continue reading “Solo 401k Loan FAQ & Answers”
What is a Roth Solo 401k Plan? What is a Solo 401k Plan?
401K Plans, creatively named after Section 401(K) of the Tax Code, are Defined Contribution qualified retirement plans that allow employees to choose (“elective deferral”) to contribute all or part of their compensation to a tax-advantaged account and exclude the amounts contributed from current taxable income. The tax code calls this a “cash or deferred arrangement,” or CODA. A 401k Plan can be combined with other types of plans, such as Defined Benefit and Cash Balance Plans, to maximize tax deductions and allow for multiple forms of plan contributions. The typical 401(k) Plan provides for employer profit sharing contributions, in addition to employee contributions. Self-Directed Solo 401(k) Plans are 401(k) plans for businesses that don’t have full-time employees other than business owners and their spouses, which can be designed to include very attractive features such as Roth 401k Contributions and After-Tax Employee Contributions.
What is a Roth Solo 401k Plan?
What Are Self-Directed Retirement Accounts?
Self-directed retirement accounts, which can be in the form of IRAs or Qualified Plans, allow you to use retirement money for non-traditional investments and retain all the tax benefits of those vehicles. Real estate investing is by far the most popular investment for such accounts, with other common assets being real estate secured private loans, private loans, hard money loans, mortgage notes, and tax liens – all of which are forms of income generation from real property. Continue reading “Self-Directed Real Estate Retirement Accounts For Real Estate Agents”
Getting access to and rolling over funds from your employer-sponsored 401k to a Checkbook QRP, Solo 401k or Checkbook IRA is doable in many instances, but you’ll have to overcome some obstacles to do so. With the knowledge provided in this post, you’ll be prepared to get the results you want.
Unlock Your Employer 401(k) to Get Checkbook Control Continue reading “In-Service Distributions: Checkbook Control Solo 401k, SDIRA & QRP”
Private Lending IRAs and Checkbook Control
Private lending is the ideal investment for an IRA…and less than ideal outside of an IRA.
Understanding why that’s the case – and why a checkbook control IRA is crucial to maximizing private lending investment returns – requires an understanding of tax and investment concepts. In this post we’ll cover the income tax treatment of private lending inside and outside of retirement accounts (IRAs, Solo 401k plans) and why a Self-Directed IRA with Checkbook Control is the IRA you need for private lending. Additionally, if you’re a real estate investor, you’ll learn how to get funding for deals by leveraging the IRAs of private lenders. Continue reading “Private Lending IRAs: The SDIRA Checkbook Retirement Account Advantage”
Why Is A Checkbook Solo 401k The Best Retirement Plan For Real Estate Professionals?
Checkbook Solo 401k retirement plans, a type of Checkbook QRP for businesses owners that don’t have full-time employees, are the ideal tax advantaged account for real estate professionals: real estate agents, mortgage brokers, real estate wholesalers, and real estate flippers.
Real estate professionals have self-employment income and KNOW REAL ESTATE, making the Checkbook 401k the perfect plan for them. In the post, we’ll present some of the benefits of a Checkbook Control 401k and some Checkbook 401K advanced tax & investing strategies. Continue reading “Checkbook Solo 401k Plans For Real Estate Professionals”
Sounds like a great candidate for a Checkbook Control Solo 401K! Between him and his spouse they could sock away tens of thousands of dollars in their Solo K and invest tax free in real estate (remember no UDFI on leveraged real-estate in a 401k!). BUT, NOT SO FAST. Here’s the catch, my buddy’s W-2 comes from his Dad’s company, which has several hundred people on payroll and the IRS has got a tool known as the Controlled Group Rules which result in ownership of businesses being attributed to relatives for tax purposes. This could potentially make a child’s Qualified Retirement Plan – QRP – subject to anti-discrimination testing based on their parent’s employees, making them ineligible for a Solo 401k – intended for an owner-only business, with no employees.
To resolve this matter, Congress provided a handy reference known as the Internal Revenue Code (IRC). The Internal Revenue Code defines family relationships in several places…so we’ve got to interpret the conflicting definitions and determine which of those apply. (Hint: It depends…)
[If “con” is the opposite of “pro,” what is the opposite of “progress?”….answer at the end of the post:)] Continue reading “Solo 401K Eligibility: Are Parents and Children Related? Controlled Groups”